A reverse mortgage is a financial tool that, when combined with other financial strategies, can allow an individual to tap the equity in their home to help make their financial resources last throughout their golden years. Homeowners over age 62 can access the equity in their principal residence, and use those funds for ongoing monthly income, lump sum advances for specific expenses, or for those “just in case” emergencies when extra funds are needed. Borrowers must continue to pay their property taxes, insurance and any association dues, and maintain their homes just as they currently do. If the person(s) on title leave the home, the reverse mortgage comes due. Heirs can choose to either sell the home, pay off the reverse mortgage balance, and distribute the remaining equity, or let the FHA foreclose on the home, and satisfy and lender deficiencies, if there is no equity remaining in the property. In no way is the homeowner or the heirs responsible for any negative equity, should there not be enough equity in the property to pay off the reverse mortgage. If any equity remains, heirs are entitled to all proceeds after selling the property and paying off the reverse mortgage balance. North Pacific Mortgage has a Reverse mortgage division to serve the needs of our seniors. Please call and ask us to direct you to a member of that group who is trained to assist you in your Reverse mortgage needs.